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Perez: Accounting Cycle For Service Business: Workbook M.A

Juan Dela Cruz started an accounting firm on July 1, 2012 by investing $100,000. Throughout July, the firm provided services to clients, purchased supplies and equipment, paid rent and salaries, and received payments from clients. By the end of the month, the firm had charged clients $41,200 for services, collected $43,000 in payments, and incurred $31,510 in expenses.

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62 views2 pages

Perez: Accounting Cycle For Service Business: Workbook M.A

Juan Dela Cruz started an accounting firm on July 1, 2012 by investing $100,000. Throughout July, the firm provided services to clients, purchased supplies and equipment, paid rent and salaries, and received payments from clients. By the end of the month, the firm had charged clients $41,200 for services, collected $43,000 in payments, and incurred $31,510 in expenses.

Uploaded by

jii
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Accounting Cycle for Service Business: Workbook

Perez

M.A.

Juan Dela Cruz started his accounting office, Juan Dela Cruz, CPA on July 1, 2012. The following are the
transactions of his accounting office during its first month of operations:
July 1
Juan Dela Cruz starts his accounting firm by investing P100,000.
3
Purchased office supplies for cash, P6,750.
4
Purchased office equipment on account for P62,500.
5
Paid the monthly rent for a furnished office condominium unit, P12,000.
7
Received P15,000 for services rendered.
9
Charged Mr. Alegre a client P12,000 for services rendered.
10
Received a 60-day, 10% note from Mr. Alegre in settlement of his account.
11
Charged a client for services rendered, P9,200.
13
Received P8,000 for services rendered.
15
Paid employees salaries, P7,800.
17
Paid half of the account due on the equipment purchased on the fourth.
20
Collected 50% of the account charged to a client on July 11.
22
Charged customers P5,000 for services rendered.
27
Received P12,000 for services rendered.
28
Paid the monthly telephone bill,P960.
31
Paid employees salaries, P7,800.
31
Oscar Ramos withdrew P10,000 for personal use.
STEP1: Analyze business transactions.
DEBIT-CREDIT ANALYSIS
Increase
Increase
Type of
or
Debit
Type of
or
Debit
Accoun Decreas
or
Accoun Decreas
or
Specific Account
t
e
Credit
Specific Account
t
e
Credit

Accounting Cycle for Service Business: Workbook


Perez

M.A.

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